FCI tender soon for wheat sale to millers

SummaryThe Food Corporation of India is likely to float a tender soon for selling 8.4 lakh tonne of wheat to flour millers and user industries.

The Food Corporation of India (FCI) is likely to float a tender soon for selling 8.4 lakh tonne of wheat to flour millers and user industries. “We will issue the tender in a day or two,” a senior FCI official said, adding that it would be issued by the regional offices. He added that the after bids are received by the FCI, the price (at which wheat is to be sold) would be decided by a high-level committee headed by FCI chairman and managing director Alok Sinha.

FE had reported on September 12 that the FCI was readying itself to float the first tender for sale of the foodgrain to bulk consumers. The first tender for bulk consumers will be floated in next couple of weeks. FCI has decided to fix a floor price for each state, besides allocating quantity state-wise. The base price in the tender for Maharashtra is fixed at Rs 1,121 a quintal, while for Kerala it is Rs 1,185 a quintal. Millers would have to bid higher than the base price of Rs 1,136 in Andhra Pradesh, Rs 1,090 in Bihar, Rs 1,027 in Delhi, Rs 1,088 in Gujarat, Rs 1,021 in Haryana and Punjab and Rs 1,055 in Uttar Pradesh. The FCI plans to offload a maximum of 75,000 tonne of wheat in Maharashtra, followed by 60,000 tonne in Kerala and 50,000 tonne each in Andhra Pradesh, Tamil Nadu, Karnataka, Delhi, Madhya Pradesh and West Bengal.

Millers will be able to get 40,000 tonne in each state of Bihar, Gujarat, Punjab and Uttar Pradesh. The FCI will sell 20,000 tonnes - 30,000 tonnes in other major states. The Centre, last week, had announced a sale of 8.4 lakh tonne of wheat to bulk consumers such as flour millers and processors under the open market sale scheme (OMSS), with an aim to check prices before Diwali.

On September 17, the government had announced a release of 9.09 lakh tonnes of wheat to 35 states and union territories during September and October for sale in the open market directly to consumers to check prices.